How an Effective Value Chain Enhances Business Resiliency

By: Larry Loeb| - Leave a comment


Every business has its own unique value chain, composed of all the steps involved in delivering their product to customers. Business resiliency involves assuring that their product or service is always there. This is what an enterprise needs to keep the chain running through any situation.

DRJ World 2017, an upcoming trade show set for March 26–29, considers this topic valuable enough that it includes a session entitled “Building Resiliency Across the Value Chain” to address this specific strategy in detail. For any enterprise, it’s important to understand what makes an effective chain — and how to leverage that activity to ensure success.

Move Activities Forward With a Value Chain

Instead of approaching business activity with a general layout of the overall processes, envisioning these activities moving forward in a chain allows enterprises to examine each link carefully in terms of how it contributes to resiliency. Being able to effectively react to situations that could threaten the movement of customers along the chain is a necessity — not a luxury.

If the movement of the chain stops at any point, the output of the entire chain halts, too. There may be a latency that will keep things moving for a time period, but at some point, the output will drop. Without the value chain working, the entire underpinning of business operations falls apart: No product, no customers, no money.

Back Up Data to Support Resiliency

So, how can businesses prevent this disaster? First, consider that rebuilding a chain link means having the data needed to do so available, or it just won’t work. Business data is usually time-variant, so any disruptions of a chain link using this data show up in other parts of the chain shortly thereafter — essentially, it creates a ripple effect that can have massive implications. To prevent disruptions like this, businesses should use a simple but effective resiliency technique: setting current and reliable data backups in place for all business processes. This strategy helps keep activities moving along smoothly.

Stop Resource-Hogging in its Tracks

While a risk assessment program is supposed to identify areas of concern and assign the proper resources necessary to address a problem, that doesn’t always happen. Fires have to be put out, and a patchwork of cobbled-together solutions can evolve around perceived risks. Given the reality of daily life, an effective chain can bring some organization to the chaos: Business processes can function together in a smoother way when the individual links of the chain are optimized and straightened out.

In addition, remember that organizational problems can greatly affect value chain resiliency. If the goals of a resiliency program are misdirected, unproductive efforts can consume the resources needed for other situations. For example, if a business exceeds the backup data storage for one process to the exclusion of another, restoring that second process after an unexpected event won’t be easy. To prevent disaster, all business processes need to have sufficient backup and be effectively managed. By keeping the movement between links up and running, resiliency avoids a chain blockage that could imperil enterprise operations.

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